The most common type of discount lending that the Fed extends to banks is called
A)seasonal credit.
B)secondary credit.
C)primary credit.
D)installment credit.

Question

Quizplus · Accepted Answer

The most common type of discount lending that the Fed extends to banks is called primary credit. Seasonal credit is a type of discount lending offered to smaller banks in areas that experience seasonal fluctuations in their economy, while secondary credit is a higher rate of interest offered to banks that do not qualify for primary credit. Installment credit typically refers to loans provided to individuals or businesses for purchasing goods or services.

The Most Common Type of Discount Lending That the Fed